NYA NYSE Composite Index Weekly Chart 40 MA Failure Ushers in Cyclical Bear Market

A critical market failure occurs over the last couple days. The NYA loses its 40-week MA at 10377-10378 now down to 10335 ushering in a cyclical bear market (weeks and months). Bulls must push the NYA above 10378 as soon as possible, otherwise they are toast going forward.

Many algorithms have this key level programmed into the models. Keybot the Quant, Keystone's proprietary trading algorithm, has the 40-wk MA programmed; it is an extremely important market parameter. Long-time followers of Keystone will remember all the drama with price moving above and below the key level in late 2014 and early 2015. The market topped out in May 2015. Watch the NYA 40-week like a hawk. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 10:07 AM EST: Markets are open and trading the NYA is at 10360 and the 40-week MA is at 10378. The drama continues. Will the bears maintain the new cyclical bear market pattern, or, will the bulls recover 18 more points and poke the bears in the eye with a stick?

Note Added 7:52 PM: NYA ends the Thursday session at 10307. The bears smile.